Commentary: Singapore should not focus only on productivity gains from AI

Singapore is aggressively pursuing artificial intelligence as a key driver for economic competitiveness and national progress, establishing a national council and offering incentives for AI adoption and training. However, the nation faces a significant risk: focusing too narrowly on AI's productivity benefits could undermine long-term learning and capability building.

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What works for productivity may not necessarily work for learning and building capability.

The allure of AI lies in its immediate ability to automate tasks, draft communications, and streamline processes, leading to increased output and reduced costs. Yet, this efficiency can come at the expense of deeper understanding. A study of Chinese students revealed that while AI tools improved homework completion times, they negatively impacted learning and exam performance. This phenomenon, termed the 'AI productivity trap,' suggests that over-reliance on AI for immediate task completion may prevent individuals from acquiring transferable knowledge.

Consider a junior lawyer using an AI copilot to draft contracts. While productivity appears to soar, the junior associate might miss crucial learning opportunities. Without grappling with the nuances of indemnity clauses, confidentiality risks, or data-protection escalations, they may not develop the essential domain knowledge and judgment that senior partners possess. True long-term gains emerge when employees can not only use AI but also critically evaluate its output, a skill honed through practice, feedback, and confronting uncertainties.

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When tasks become easier thanks to technology, people perform better in the moment but acquire less understanding that can be transferred to new situations.

This principle extends across various sectors, including consulting, finance, medicine, and education. The article advocates for a 'two-track adoption plan' where AI training emphasizes problem diagnosis, assumption testing, and knowledge transfer to new situations. While rapid integration is tempting, businesses must ensure that AI deployment supports, rather than supplants, the development of critical thinking and domain expertise for sustained growth.

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All of these require domain knowledge and judgment. This expertise can only be built when juniors practise drafting contracts, receive feedback, confront what they do not understand, and then try again.